Looking for the most tax efficient method of doing this, I will have a mortgage on this property, LTV <50%. The monthly repayments will be 900 over 12 years, am aware I don't have to register with RTB, but then I can't claim the interest on mortgage against my tax liability, house is not in a RPZ. Any advice as how to minimise tax? Son and his partner will be residing in the house. Not sure how much rent I would charge him but was thinking about 800 pm.
Well then you're fine. If you don't have to register, then you aren't breaching the Residential Tenancies Act and your entitlement to mortgage interest deduction is safe. Don't uncritically believe all you read on tax on websites. While most of it is ok, technical nuances can often get lost.https://www.lawyer.ie/property/registering-your-tenancy/
According to this, then the property does not have to be registered.
Any advice as how to minimise tax?
I don't think I'm entitled to the mortgage interest tax relief if not registered, it's a catch 22 really,
1. The following properties are excluded from the requirement to register with the Private Residential Tenancies Board (PRTB).https://www.lawyer.ie/property/registering-your-tenancy/
According to this, then the property does not have to be registered.
It's not at all clear how much interest you are paying. You'd need to know that to figure out how much you are losing on tax relief. With low interest rates it might not be much.Looking for the most tax efficient method of doing this, I will have a mortgage on this property, LTV <50%. The monthly repayments will be 900 over 12 years, am aware I don't have to register with RTB, but then I can't claim the interest on mortgage against my tax liability, house is not in a RPZ. Any advice as how to minimise tax? Son and his partner will be residing in the house. Not sure how much rent I would charge him but was thinking about 800 pm.
I supposed if it is solely the son paying the rent than that's ok,
It also means that she would then be a licensee and much easier to get out than if you're in a landlord/tenant scenario.That is a very good point.
Do a formal rental agreement with your son only.
Not only does that appear to protect you from the possible rent restrictions, it would also protect you in the event that your son breaks up with his girlfriend.
Brendan
1. The following properties are excluded from the requirement to register with the Private Residential Tenancies Board (PRTB).
(g) A dwelling in which the spouse, parent or child of the landlord is resident and there is no written lease or tenancy agreement.
That seems pretty clear. But if it were me I'd be enquiring directly with the RTB because of the son's partner. I supposed if it is solely the son paying the rent than that's ok, and whatever side arrangment the son has with the girlfriend would be their business.
Fat lot of good that is if they mislead the OP and then cite "terms and conditions" to escape liability for their loss afterwards.I don't care if they have a duty of care to me or not. But they are supposed to be there to guide one.
For God's sake, don't do that. They have no duty of care to you and have a vested interest in maximising the numbers registering.
Would you mind explaining this, I'm a bit lost, are you saying I should register?
I see all here are as confused as I am or have their own interpretation/understanding of the RTB requirements.
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